Yum Brands : 2023 GRI Index
YUM
2023 GRI INDEX
GRI 1−FOUNDATION 2021
The information cited in this Global Reporting Initiative (GRI) content index is reported in accordance with the GRI Universal Standards for the period January 1, 2023 to December 31, 2023. Of the Sector Standards available as of the date of this report, none applies to Yum! Brands. We anticipate future application of the food and beverages industry standard once released by GRI. All responses with the following character ">" indicate the navigation structure of the Yum! Brands 2023 Global Citizenship & Sustainability Report.
Disclosure
Response
GRI 2
General Disclosures 2021: Organizational Details
2-1 Organizational details
Yum! Brands, Inc.
2023 Form 10-K, Title Page, p. 1
Louisville, Kentucky, U.S.
2023 Form 10-K, Business, p. 3
Locations:
KFC
Taco Bell
Pizza Hut
Habit Burger & Grill
2-2 Entities included in the organization's sustainability reporting
2023 Form 10-K, Overview of Business, pp. 3 - 4, Principles of Consolidation and Basis of Preparation p. 60
The same entities included in the audited consolidated financial statements of Yum! Brands, Inc. are included within sustainability reporting.
As applicable, certain additional operational information relating to third-party entities within Yum!'s value chain, including franchisees and
suppliers, is also used.
2-3 Reporting period, frequency and contact point
Annual
Year End: December 31, 2023
Publication Date: October 8, 2024
2-4 Restatements of information
No restatements have been made to historical greenhouse gas (GHG) emissions in the current reporting year.
2-5 External assurance
The Statement of Greenhouse Gas Emissions and Water Withdrawals, which includes Scopes 1, 2 and 3 GHG emissions and water
withdrawals, was subject to limited assurance in accordance with the attestation standards established by the American Institute of
Certified Public Accountants.
In addition, all sustainability reporting is subject to multiple tiers of internal review, which may include subject matter experts, the legal
and compliance teams, and the Yum! Executive Team. Quarterly progress updates are provided to the Board-level Nominating & Governance
Committee, and to the management-level ESG Disclosure Committee.
General Disclosures 2021: Activities & Workers
2-6 Activities, value chain and other business relationships
2023 Form 10-K, Business, pp. 3 - 11
Locations:
KFC
Taco Bell
Pizza Hut
Habit Burger & Grill
2-7 Employees
2023 Form 10-K, Human Capital Management, p. 7
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Disclosure
Response
General Disclosures 2021: Governance
2-8 Workers who are not employees
Omission: this disclosure is not applicable to Yum! Brands, as Yum! selectively utilizes contractors within above-restaurant roles, however the
total number is considered insignificant for reporting purposes.
2-9 Governance structure and composition
DEF 14A Proxy Statement(definitive), hereinafter referred to as "2024 Proxy", pp. 6-15
Approach > Corporate & Sustainability Governance
2-10 Nomination and selection of the highest governance body
2024 Proxy, pp. 7 - 10, 18
2-11 Chair of the highest governance body
2024 Proxy, pp. 19 - 20
2-12 Role of the highest governance body in overseeing the management of impacts
2024 Proxy, pp. 19 - 22, 24 - 25
2-13 Delegation of responsibility for managing impacts
2024 Proxy, pp. 21 - 22, 24 - 25
2-14 Role of the highest governance body in sustainability reporting
2024 Proxy, pp. 21 - 22
2-15 Conflicts of interest
Global Code of Conduct, p. 15
2-16 Communication of critical concerns
2024 Proxy, p. 23
2-17 Collective knowledge of the highest governance body
2024 Proxy, p. 9
2-18 Evaluation of the performance of the highest governance body
2024 Proxy, pp. 19 - 20
2-19 Remuneration policies
2024 Proxy, pp. 16 - 18, 22
2-20 Process to determine remuneration
2024 Proxy, pp. 16 - 18
2-21 Annual total compensation ratio
2024 Proxy, CEO Pay Ratio, p. 73
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Disclosure
Response
General Disclosures 2021: Strategy, Policies & Practice
2-22 Statement on sustainable development strategy
Yum! Brands 2023 Global Citizenship & Sustainability Report > A Message From David Gibbs
2-23 Policy commitments
ESG Library
2-24 Embedding policy commitments
Approach > Corporate & Sustainability Governance
People > Upholding Ethics & Human Rights
Planet > Key Wins
Planet > Packaging & Circularity
Food > Animal Welfare
Food > Evolving Our Commitment to Limit Antibiotic Use
2-25 Processes to remediate negative impacts
Global Code of Conduct, pp. 29 - 34
2-26 Mechanisms for seeking advice and raising concerns describe the mechanisms for
Global Code of Conduct, pp. 29 - 34
individuals
2-27 Compliance with laws and regulations
2023 Form 10-K, Note 20: Contingencies, pp. 99 - 100
2-28 Membership associations
Approach > Reporting & Disclosures
General Disclosures 2021: Stakeholder Engagement
2-29 Approach to stakeholder engagement
Approach > Reporting & Disclosures > Materiality
2-30 Collective bargaining agreements
Omission: Yum! Brands does not disclose this information due to confidentiality constraints.
GRI 3
General Disclosures 2021: Material Topics
3-1 Process to determine material topics
Approach > Reporting & Disclosures > Materiality
3-2 List of material topics
Approach > Reporting & Disclosures > Materiality
3-3 Management of material topics
Approach > Reporting & Disclosures > Materiality
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DisclosureResponse
GRI 200 ECONOMIC
201: Economic Performance
Management of the material topic
2023 Form 10-K, Financial Statements and Supplementary Data, pp. 52 - 59
201-1 Direct economic value generated and distributed
2023 Form 10-K, Financial Statements and Supplementary Data, pp. 52 - 103
201-2 Financial implications and other risks and opportunities due to climate change
2023 Form 10-K, Risk Factors, pp. 9 - 23
2024 CDP Questionnaire
201-3 Defined benefit plan obligations and other retirement plans
2023 Form 10-K, Pension, Retiree Medical and Retiree Savings Plans, pp. 84 - 91
201-4 Financial assistance received from government
2023 Form 10-K, Income Taxes, pp. 93 - 96
202: Market Presence
Management of the material topic
2023 Form 10-K, Human Capital, pp. 7 - 8
People > Investing in Employees
202-1 Ratios of standard entry level wage by gender compared to local minimum wage
People > Investing in Employees
202-2 Proportion of senior management hired from the local community
People > Investing in Employees
205: Anti-corruption
Global Code of Conduct
Management of the material topic
Supplier Code of Conduct
People > Upholding Ethics & Human Rights
205-1 Operations assessed for risks related to corruption
People > Upholding Ethics & Human Rights
205-2 Communication and training about anti-corruption policies
People > Upholding Ethics & Human Rights
100% of Yum! employees, including our Board of Directors, are annually trained in anti-corruption practices.
205-3 Confirmed incidents of corruption and actions taken
There were no confirmed instances of corruption, as reported as breaches in our Global Code of Conduct, which would include occurrences
including but not limited to corruption, bribery, conflicts of interest, money laundering, insider trading or harassment, in 2023.
206: Anti-Competitive Behavior
Management of the material topic
Global Code of Conduct
206-1 Legal actions for anti-competitive behavior, anti-trust and monopoly practices
There were no confirmed instances of anti-competitive behavior, anti-trust and monopoly practices in 2023.
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Disclosure
Response
207: Tax Governance, Control & Risk Management
2023 Form 10-K, Income Taxes, pp. 93 - 96
Management of the material topic
2024 Proxy, pp. 23 - 25, 87 - 88
Tax & Trade Policy
207-1 Approach to Tax
2024 Proxy, pp. 87 - 88
Political Contributions Policy
Tax & Trade Policy
207-2 Tax governance, control and risk management
2024 Proxy, pp. 23 - 25, 87 - 88
2024 Proxy, p. 23
207-3 Stakeholder engagement and management of concerns related to tax
Political Contributions Policy
Tax & Trade Policy
207-4Country-by-country reporting
2023 Form 10-K, Income Taxes, pp. 93 - 96
GRI 300: ENVIRONMENTAL
301: Materials
Planet > Packaging & Circularity
Sustainable Packaging & Waste Reduction page on yum.com
2024 CDP Questionnaire
Management of the material topic
Global Forest Stewardship Policy
Palm Oil Policy
Paper-Based Packaging Sourcing Policy
Sustainable Packaging Policy
Approximately 470,000 metric tons of fiber (renewable) and 140,000 metric tons of plastic (nonrenewable)-based,consumer-facing
301-1 Materials used by weight or volume
packaging and customer servicewares were used in 2023. This is only a directional estimate, and we expect refinements in data collection in
the future. Our primary product is food, and we consider it to be a renewable resource.
301-2 Recycled input materials used
Approximately 31% of fiber-based and 14% of plastic-based packaging and customer servicewares are from recycled sources. This is only a
directional estimate, and we expect refinements in data collection in the future.
As part of our approach to sustainable materials, we encourage the use of recycled sources of material in packaging and servicewares as
feasible and as allowed by local regulations. Most of these are either fiber- or plastic-based. See Planet > Packaging & Circularity for more
301-3 Reclaimed products and their packaging materials
information on Yum!'s packaging initiatives.
Data is collected through our survey of fiber-based and plastic-based packaging. Quantities must be considered as a directional estimate, and
we expect refinements of data collection in the future.
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Disclosure
Response
302: Energy
Management of the material topic
Planet > Goals & Progress
2024 CDP Questionnaire
Energy Consumption
Energy Consumption
From Renewable
From Nonrenewable
Sources
Sources
Total Consumption
Consumption of fuel (MWh)
−
180,341
180,341
Consumption of purchased or acquired electricity (MWh)
37,311
248,168
285,479
Consumption of purchased or acquired heat (MWh)
−
−
−
302-1 Energy consumption within the organization
Consumption of purchased or acquired steam (MWh)
−
−
−
Consumption of purchased or acquired cooling (MWh)
−
−
−
Consumption of self-generatednon-fuel renewable energy (MWh)
369
−
369
Total energy consumption (MWh)
37,680
428,508
466,188
Total energy consumption (GJ)
135,650
1,542,630
1,678,280
Energy type as a proportion of total energy
8%
92%
100%
For information regarding standards, methodologies, assumptions and calculations, refer to our 2024 CDP Questionnaire.
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Disclosure
Response
302-2 Energy consumption outside of the organization
Total energy consumption for franchise restaurants is estimated to be 71,387,935 GJ. For information regarding standards, methodologies,
assumptions and calculations, refer to our 2024 CDP Questionnaire.
302-3 Energy intensity
Based on the total energy consumed for company-owned and franchise restaurants (including company offices). The energy intensity ratio is
1,277 GJ/restaurant. This includes all types of energy that we use.
Yum! centers its conservation strategy on developing brand standards for efficient restaurant design, appliances and technology. Each of our
302-4 Reduction of energy consumption
brands maintains and applies efficiency standards to new restaurant builds and remodels. The standards include recommendations on HVAC,
cooking equipment, refrigeration, lighting and signage. Implementation of the recommended measures will reduce the average energy and
water intensity of Yum!'s global restaurant portfolio.
302-5
Omission: this disclosure is not applicable to Yum! Brands products and services.
303: Water
Management of the material topic
Planet > Nature & Biodiversity > Water
2024 CDP Questionnaire
303-1 Interactions with water as a shared resource
Planet > Nature & Biodiversity > Water
2024 CDP Questionnaire
303-2 Management of water discharge related impacts
2024 CDP Questionnaire
Total water withdrawals for company-owned restaurants for the reporting year are approximately 1,978 ML. All material withdrawals are from
303-3 Water withdrawal
municipal water/third-party systems. Total water withdrawal for company-owned restaurants located in water-stressed areas, as defined
by WRI Aqueduct Water Risk Atlas 3.0, is estimated to be 626 ML according to our 2023 analysis. For information regarding standards,
methodologies, assumptions and calculations, refer to our 2024 CDP Questionnaire.
All water withdrawn by company-owned restaurants and not consumed in selective product preparation, is discharged to municipal water
systems, and, for those restaurants with landscaping irrigation, to groundwater. Given our overall water withdrawal decreased in 2023
303-4 Water discharge
compared with 2022, it is reasonable to assume our total water discharged also reduced. However, as we do not sub-meter to monitor
municipal water system or groundwater discharges, we are unable to confirm the quantified reduction. We expect water discharges to
decrease over time as we invest in conservation measures which reduce overall water withdrawal. For information regarding standards,
methodologies, assumptions and calculations, refer to our 2024 CDP Questionnaire.
All water withdrawn by company-owned restaurants and not consumed in selective product preparation, is discharged to municipal water
systems, and, for those restaurants with landscaping irrigation, to groundwater. Given our overall water withdrawal decreased in 2023
303-5 Water consumption
compared with 2022, it is reasonable to assume our total water consumed also reduced. However, as we do not monitor consumption, nor
sub-meter to monitor municipal water system or groundwater discharges, we are unable to confirm the quantified reduction. We expect water
consumption to decrease over time as we invest in conservation measures which reduce overall water withdrawal.
305: Emissions
Management of the material topic
Planet > Our Footprint at a Glance
2024 CDP Questionnaire
305-1 Direct (Scope 1) GHG emissions
38,922 MT CO2e
For additional details, see ourStatement of Greenhouse Gas Emissions and Water Withdrawals.
105,189 MT CO2e (location-based)
305-2 Energy indirect (Scope 2) GHG emissions
95,241 MT CO2e (market-based)
For additional details, see ourStatement of Greenhouse Gas Emissions and Water Withdrawals.
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Disclosure
Response
Other indirect (Scope 3) GHG emissions: 31,437,465 MT CO2e (market-based)
This total is comprised of the applicable category totals as follows:
• Purchased Goods and Services (Food, Cooking Oil, Plastic Servicewares, Fiber-Based Packaging): 23,107,364 MT CO2e
• Franchisees (Buildings Scope 1 and 2, market-based): 7,135,540 MT CO2e
305-3 Other indirect (Scope 3) GHG emissions
• Upstream Transportation and Distribution: 106,776 MT CO2e
• Waste Generated in Operations: 780,941 MT CO2e
• Downstream Transportation and Distribution: 248,387 MT CO2e
• End of Life Treatment of Sold Products: 41,557 MT CO2e
• Business Travel: 16,900 MT CO2e
For additional details, see ourStatement of Greenhouse Gas Emissions and Water Withdrawals.
GHG emissions intensity, metric 1: 0.00014 MT CO2e per unit total company sales for Scopes 1 and 2 emissions (market based).
GHG emissions intensity, metric 2: 126 MT CO2e per restaurant (based on average restaurant count for the reporting year) Scopes 1 and 2
305-4 GHG emissions intensity
emissions (market-based), including office support emissions. For information regarding standards, methodologies, assumptions and
calculations, refer to our 2024 CDP Questionnaire.
GHG emissions intensity, metric 2: 152 MT CO2e per restaurant (based on average restaurant count for the reporting year) Scope 3 emissions
(market-based), including franchisee restaurants only. For information regarding standards, methodologies, assumptions and calculations,
refer to our2024 CDP Questionnaire.
Yum! centers its conservation strategy on developing brand standards for efficient restaurant design, appliances and technology. Each of
305-5 Reduction of GHG emissions
our brands maintains and applies efficiency standards to new restaurants builds and remodels. The standards include recommendations
on HVAC, cooking equipment, refrigeration, lighting and signage. Implementation of the recommended measures will reduce the average
energy and emissions intensity of Yum!'s global restaurant portfolio.
305-6 Emissions of ozone-depleting substances (ODS)
Omission: this disclosure is not applicable to Yum! Brands products and services.
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
Omission: this disclosure is not applicable to Yum! Brands products and services.
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Disclosure
Response
306: Waste 2020
Management of the material topic
Planet > Goals & Progress
Planet > Packaging & Circularity
306-1 Waste generation and significant waste-related impacts
Planet > Goals & Progress
Planet > Packaging & Circularity
306-2 Management of significant waste related impacts
Planet > Packaging & Circularity
The total weight of nonhazardous waste removed from restaurants, both company-owned and franchised, is an estimated 2,679,054 MT. We
306-3 Waste generated
do not generate material quantities of hazardous waste. It does not account for products and packaging intended for consumer consumption
outside of the restaurants.
Collecting waste data is challenging due to wide variation in global diversion infrastructure, and we are working to refine our data collection
306-4 Waste diverted from disposal
process and methodology for global estimates. Yum! is committed to enhancing recoverability in our product packaging. Globally, it is
estimated that at least 20% of consumer-facing plastic packaging is considered reusable, recyclable or compostable. Additionally, Yum!
donated over 2,400 MT of food waste across 34 countries in 2023.
306-5 Waste directed to disposal
Omission: this disclosure is not applicable to Yum! Brands products and services.
308: Supplier Environmental Assessment
Management of the material topic
People > Upholding Ethics & Human Rights
Supplier Code of Conduct
308-1 New suppliers that were screened using environmental criteria
We are taking steps to introduce environmental and sustainability criteria as part of the purchasing process for our key categories.
Yum! discloses our climate-related risks and opportunities through a Task Force on Climate-related Financial Disclosures (TCFD) report.
308-2 Negative environmental impact in the supply chain and actions taken
The results of our TCFD assessment, conducted in 2021, provide an analysis of the physical and regulatory risks that directly impact our
restaurants and supply chain across regions and brands. This helps guide the prioritization of our work in addressing and mitigating risks of
climate issues.
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DisclosureResponse
GRI 400: SOCIAL
401: Employment
Management of the material topic
People > Key Wins
People > Investing in Employees
401-1 New employee hires and employee turnover
Omission: Yum! Brands does not disclose this information due to confidentiality constraints.
Yum! and our franchisees offer restaurant employees a range of medical benefits, health initiatives, childcare discounts, educational
401-2 Benefits provided to full-time employees that are not provided to temporary or
scholarships and tuition reimbursement, and gym discounts, as well as training and development opportunities. Our company above-
restaurant employees benefit from a total rewards package that includes wellness programs, flexible working hours, working from home
part-time employees
arrangements, parental leave for primary and non primary caregivers, lactation facilities, a generous 401(k) match and more. Most of the
employee programs and benefits are applicable in the U.S. and subject to change in other markets.
While Yum! doesn't have a global primary leave policy, the organization follows all applicable laws and regulations where it operates and in
many cases goes beyond. Based on information from key markets, Yum! estimates that its global above-restaurant employees and restaurant
general managers/assistant managers at company-owned restaurants, receive a minimum of six weeks of paid time off. In the U.S., Yum!
401-3 Parental leave
offers eligible birth mothers and fathers, and adoptive and foster parents who are restaurant area coaches and above, six weeks of paid time
off under Yum!'s Baby Bonding Policy. Certain U.S. restaurant employees are also eligible for Baby Bonding benefits. Those who are not
eligible for Baby Bonding are eligible for leave based on both the Family and Medical Leave Act and applicable state law. It is estimated that
91% of employees who returned from parental leave remained employed by the company 12 months after returning.
402: Labor/Management Relations
Yum! is committed to maintaining a work environment that respects and supports human rights around the world. Our ethics and compliance
program, based on our Global Code of Conduct, demands the highest ethical standards in all of our operations globally. This policy applies
to all directors, officers and employees of Yum!, as well as to our international agents, consultants, joint venture partners and any other third-
party representatives acting on our behalf. We respect the right of all employees to associate or not to associate with any group, as permitted
Management of the material topic
by applicable laws and regulations. We require compliance with all local labor laws in every market where we operate. We have and will
continue to partner with various stakeholders to collect input and help guide our human rights efforts.
Human Rights & Labor Practices Policy
Global Code of Conduct
402-1 Minimum notice periods regarding operational changes
We require our franchisees to fully comply with applicable national and/or local legal requirements for minimum notice periods regarding
significant operational changes.
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Disclaimer
YUM! Brands Inc. published this content on October 07, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 07, 2024 at 21:42:03.835.